Enter what you spend in a year and the share of your savings you plan to withdraw each year. The calculator gives your target number, then uses your current savings, monthly saving and an assumed return to estimate how many years it may take.
How the calculation works
Target = yearly spending / withdrawal rate. With a 4% rate, the target is 25 times your yearly spending. The years to reach it come from monthly compounding of your savings plus your monthly additions. The 4% figure comes from US studies of past markets and is a starting point, not a safe rule for everyone.
FAQ
What withdrawal rate should I test?
Many planners test 3% to 4%. A lower rate means a bigger target but more room for bad market years, longer retirements and higher fees.
Does this include pensions?
Subtract the yearly pension or other income you expect from your yearly spending before you enter it. The target then covers only the gap.
Is the result in today’s money?
If you use a return after inflation (for example 6% minus 3% = 3%), the target and the years are in today’s money.